As a novel idea for discussion on the role of industrial development on regional development, the term “cluster” became noteworthy since 90’s in order to increase competitiveness. Territorial development researchers believe that formation of regional industrial clusters improves competitiveness and plays a role in promoting competitive advantages and regional development. Hence, because of the possibility of realization of competitive advantage, Tourism clusters became a focal point for research and policy making. Against this background, the purpose of this research is to analyze and review the role of industrial clusters on development of regional competitiveness and assumes that the higher number of relations in an industrial cluster leads to higher level of regional competitiveness. The research applies descriptive-analytical research method and utilizes questionnaire to collect data. The data was studied by SPSS and Lisrel software packs after approval of validity and reliability of data. Findings corroborate the relation between higher number of relations in industrial clusters with higher level of regional competitiveness and also identifies the contributing factors to development and stimulation of regional development which are ranked by the order of their effect as follows: 1. Social relations, 2. Geographic and location relations, 3. Economic relations, and 4. Institutional relations.

Urban development strategy represents a contemporary approach in urban planning and management, offering a framework for achieving sustainable urban development through poverty reduction, citizen participation, and increased investment. Like many cities in Iran, Ardabil faces numerous challenges, including inadequate governance, deteriorating infrastructure, substandard housing, weak public utilities, and insufficient social and health services. These issues underscore the necessity of strategic planning to address urban development effectively. This study aims to evaluate the indicators of urban development strategy in Ardabil. Employing a descriptive-analytical methodology, the research is grounded in field investigations. A sample size of 230 participants was determined using Sample Power software. Data analysis was conducted using one-sample T-tests and structural equation modeling (SEM) in AMOS Graphics software. The results of the one-sample T-test revealed that the status of urban development strategy indicators—livability, good governance, bankability, and competitiveness—in Ardabil is suboptimal, with mean scores of 2.21, 2.6, 2.62, and 2.15, respectively. Second-order factor analysis indicated that among the dimensions of urban development strategy, competitiveness, with a factor weight of 0.93, exerts the most significant influence, while bankability, with a factor weight of 0.62, has the least impact. Furthermore, the findings demonstrated that an improvement in the good urban governance index leads to a 0.55 increase in bankability, a 0.76 increase in livability, and a 0.86 increase in competitiveness. These results highlight the interconnectedness of governance quality with other dimensions of urban development, emphasizing the need for integrated strategies to enhance Ardabil's urban sustainability.